The crypto market is now on the rise, and the long-term upward trend is very likely to continue. However, there is also evidence that BTC and ETH may lose up to 20% of their price in the short term. This is a normal reaction of the market — and a chance for you to profit not even only by buying the dip.
Let’s say you decide to use crypto lending — you take a crypto loan while BTC is down at, for example, $17,500. This means you leave your Bitcoin for a while (let’s say, 1 BTC) and get some USDT back (9,680 at the current rate). You can now do with your new pack of Tether whatever you like: trade it, withdraw to fiat, buy something, or invest.
Say, you come back to the cryptocurrency lending service to repay your loan next December. By that time, Bitcoin has skyrocketed to $100,000. To get your BTC back, you only have to repay 9,680 Tether plus a small fee. Not only have you preserved your Bitcoin, but it also helped you achieve your goals without being sold!
The vast majority of Ethereum and Bitcoin predictions for the long term are bullish — for BTC, 1 Bitcoin to the dollar may reach 200K and more. When Bitcoin goes that high, strong price drops (market corrections) are very likely. In case you took a loan when the BTC price was high, this is where you risk losing your collateral: if its price plunges by more than 50%, we will have to sell it (50% is the loan-to-value rate in our crypto lending program).
Such a scenario is of a very low probability now: Bitcoin and Ethereum are at the start of a significant bull run, and almost no one is expecting their prices to collapse much below the current level. But they are likely to drop by 15-20% soon — a great time for you to catch your loan!
Bitcoin has settled around $36,000 and faces a strong resistance level up there. If the bulls manage to get over it, the first crypto value can rise to $50-$57K soon. But the bears won’t go down without a fight — market signs show they may drop Bitcoin down to $30,000 in the upcoming weeks.
Ethereum has also been unstable at around $2500 for the past week. Buyers are strong and if they push the price above $3300, it may skyrocket further to $4500. But the market is ambiguous, and sellers are also active — plunging to $4000 in the short term is possible.
The easiest answer to this is — simply to buy it and HODL. However, in many life circumstances, we need extra funds for various expenses, but withdrawing Bitcoin for these purposes feels like a lame idea. Cryptocurrency lending platform CoinRabbit helps you use your coins without selling them. And with the possible upcoming market correction, it feels like a nice time to profit from this opportunity — try now and make the most of your Bitcoin!
Holding Bitcoin is, without doubt, the safest way to make a profit on it. However, if you use a crypto-backed loan feature, you can make a profit on both assets and not only on one of them, which by all means is more beneficial despite the volatility. You can try it right now on CoinRabbit 🙂
Not financial advice. Do your own research and take everything moderately.
Crypto-backed loans have their own risks that should be taken respectively.